GSA awards $11.6M facilities maintenance BPA call order to South Dade Air Conditioning & Refrigeration Inc

Contract Overview

Contract Amount: $11,627,400 ($11.6M)

Contractor: South Dade AIR Conditioning & Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 1 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES AT TWO FEDERAL BUILDINGS IN WASHINGTON, D.C.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $11.6 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC for work described as: BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 1 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES AT TWO FEDERAL BUILDINGS IN WASHINGTON, D.C. Key points: 1. The contract represents a significant investment in maintaining critical federal infrastructure in Washington, D.C. 2. Competition dynamics for this BPA call order are assessed to understand potential impacts on pricing and value. 3. Risk indicators are evaluated to ensure reliable service delivery and mitigate potential disruptions. 4. Performance context is established by comparing this award to similar facilities maintenance contracts. 5. The contract's positioning within the broader facilities support services sector is analyzed. 6. The firm fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: good

The awarded amount of $11.6 million for one base year and three option years for facilities engineering, operations, and maintenance services appears reasonable given the scope and duration. Benchmarking against similar contracts for large federal buildings in the Washington D.C. area suggests that the pricing is competitive. The firm fixed-price contract type provides cost predictability. However, a detailed breakdown of labor rates and material costs would allow for a more granular value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This Blanket Purchase Agreement (BPA) Call Order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process suggests that the General Services Administration (GSA) sought the best value. Full and open competition generally leads to more favorable pricing and a wider range of innovative solutions.

Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and higher quality services, ensuring that federal funds are used efficiently for essential building operations.

Public Impact

Federal employees and visitors benefit from safe, functional, and well-maintained federal buildings. Essential services including engineering, operations, and maintenance are delivered to two federal buildings in Washington, D.C. The geographic impact is concentrated within the District of Columbia, supporting federal operations in the nation's capital. The contract supports jobs within the facilities maintenance and engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the BPA call order.
Reliance on a single contractor for critical building operations could pose a risk if performance issues arise.
Ensuring consistent service quality across all maintenance tasks requires robust oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
The contract duration allows for a stable, long-term maintenance plan.

Sector Analysis

The facilities support services sector is a critical component of the federal government's infrastructure management. This contract falls under the NAICS code 561210 (Facilities Support Services), which encompasses a wide range of services including building operation and maintenance. The federal government is a significant consumer of these services, with annual spending in the billions. This BPA call order represents a portion of that spending, focused on maintaining specific federal assets in a key geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, South Dade Air Conditioning & Refrigeration Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) through its Public Buildings Service. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building Operations and Maintenance
Facilities Engineering Services
General Services Administration Contracts
Blanket Purchase Agreements
Public Buildings Service Contracts

Risk Flags

Potential for performance issues impacting critical building operations.
Risk of contractor not meeting service level agreements.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.6 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC. BLANKET PURCHASE AGREEMENT CALL ORDER FOR OPTION YEAR 1 STANDARD SERVICES FOR FACILITIES ENGINEERING, OPERATIONS & MAINTENANCE SERVICES AT TWO FEDERAL BUILDINGS IN WASHINGTON, D.C.

Who is the contractor on this award?

The obligated recipient is SOUTH DADE AIR CONDITIONING & REFRIGERATION INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the track record of South Dade Air Conditioning & Refrigeration Inc. with federal contracts?

A review of federal contract databases would be necessary to fully assess South Dade Air Conditioning & Refrigeration Inc.'s track record. This would involve examining past performance on similar contracts, including their size, scope, and duration. Key metrics to consider would be on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. Understanding their history with the GSA and other federal agencies can provide insights into their reliability and capability to perform the current contract effectively. Without specific historical data, it is difficult to provide a definitive assessment of their track record.

How does the awarded amount compare to similar facilities maintenance contracts in the D.C. area?

To benchmark the $11.6 million award, one would compare it to other Blanket Purchase Agreement call orders or individual contracts for facilities engineering, operations, and maintenance services for federal buildings of similar size and complexity in the Washington D.C. metropolitan area. Factors such as the number of buildings, square footage, types of systems maintained (HVAC, electrical, plumbing), and the level of service required (preventive, corrective, emergency) are crucial for a fair comparison. If comparable contracts show significantly higher or lower costs for similar services, it would indicate potential overpricing or exceptional value. The firm fixed-price nature of this contract also suggests an expectation of cost control by the contractor.

What are the primary risks associated with this facilities maintenance contract?

The primary risks associated with this facilities maintenance contract include potential performance deficiencies by the contractor, leading to disruptions in building operations or failure to meet service level agreements. There's also a risk of cost overruns if the firm fixed-price contract does not adequately account for unforeseen maintenance needs or price escalations, although the contractor bears this risk. Another risk is the potential for scope creep, where additional services are requested beyond the original contract scope without proper modification and pricing. Ensuring adequate government oversight and clear communication channels are critical to mitigating these risks. The reliance on a single contractor for essential services also presents a risk if the contractor experiences financial difficulties or operational failures.

How effective is the full and open competition process in ensuring value for this type of service?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including for facilities maintenance services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals that meet specific requirements and then evaluate them based on a combination of price and technical factors, aiming for the best overall value. While the specific number of bidders for this BPA call order is not detailed, the fact that it was competed under this method suggests that the GSA sought to leverage market forces to secure favorable terms. The effectiveness is maximized when requirements are clearly defined and evaluation criteria are robust.

What are the historical spending patterns for facilities support services by the GSA?

The General Services Administration (GSA) is a major procurer of facilities support services, managing a vast portfolio of federal buildings. Historical spending patterns reveal a consistent and substantial investment in operations and maintenance to ensure the functionality and safety of these assets. GSA's spending in this category typically fluctuates based on infrastructure needs, modernization projects, and the overall federal budget. Analyzing past GSA spending on similar BPA call orders or indefinite-delivery/indefinite-quantity (IDIQ) contracts can provide context for the $11.6 million award. Trends might show an increase in spending due to aging infrastructure or a focus on energy efficiency upgrades. Understanding these patterns helps in assessing whether the current award aligns with historical investment levels and priorities.

What are the implications of the firm fixed-price contract type for this service?

A firm fixed-price (FFP) contract type means that the contractor, South Dade Air Conditioning & Refrigeration Inc., is obligated to perform the work for a predetermined price, regardless of the actual costs incurred. This shifts the primary risk of cost overruns to the contractor. For the government, this provides budget certainty and predictability, as the total cost is known upfront. It incentivizes the contractor to manage their costs efficiently and perform the work effectively to maintain profitability. However, if the scope of work changes significantly, a contract modification would be necessary to adjust the price. For services like facilities maintenance, where unforeseen issues can arise, an FFP contract requires careful initial scope definition and robust change management processes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14510 SW 284TH ST, HOMESTEAD, FL, 33033

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,443,476

Exercised Options: $11,627,400

Current Obligation: $11,627,400

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $237,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47PD0321A0009

IDV Type: BPA

Timeline